Adani Group Exits $2 Billion Joint Venture with Wilmar to Focus on Core Infrastructure
Adani Group sells its 44% stake in Adani Wilmar for $2 billion, reallocating funds to key infrastructure projects like renewable energy and air transport.
The Adani Group has decided to sell its 44% stake in Adani Wilmar Ltd., a consumer goods joint venture with Singapore-based Wilmar International Ltd., in a $2 billion deal. This strategic move aims to help Adani focus on its core infrastructure businesses, including renewable energy and air transport.
The sale will happen in two phases. First, Adani Enterprises will sell 13% of its stake to comply with Indian regulations that require a minimum level of public shareholding. In the second phase, Wilmar will purchase the remaining 31% stake at a price capped at ₹305 per share, which is lower than the company’s recent closing price of ₹328.75.
After completing the transaction, Adani will fully exit Adani Wilmar, redirecting the funds to strengthen its key infrastructure projects.
Advertisement
This decision comes as the Adani Group faces legal and financial pressures. Founder Gautam Adani is under investigation in the United States over allegations of involvement in a bribery scheme, which has raised concerns about the group’s corporate governance and affected its ability to secure new funding. Several of the group’s companies are now under close watch by credit rating agencies.
The challenges have also led to disruptions in other areas. For instance, Adani Green Energy canceled a $600 million green bond offering, and its partner TotalEnergies halted fresh investments in the group.
Adani Wilmar, originally an equal joint venture between the Adani Group and Wilmar International, is expected to undergo significant changes. Adani’s representatives will leave the company’s board, and a name change is likely.
Despite the news, shares of Adani Enterprises saw an 8.3% gain, while Adani Wilmar shares dropped slightly by 1.8% to ₹323.25.
Adani Wilmar, which went public in 2022, had been preparing for a share sale to meet Indian regulations requiring at least 25% of a listed company’s shares to be held by non-promoters within three years of listing. The company has until February 2024 to comply.
This exit aligns with the Adani Group’s strategy to shift resources toward its core businesses. As the group navigates legal challenges and financial scrutiny, the move underscores its focus on infrastructure growth and operational efficiency.
Also Read: Adani Group Breaks New Ground with Debut Dollar Bond Post Hindenburg Controversy
